Some big boppers cut rates last week, including NAB, ANZ and ING. Australia loves its three-letter acronyms.
Perhaps the biggest scalp this week was Macquarie Bank, being Australia's fifth-largest bank by most measurements.
Some smaller players brought in the rear with some noteworthy moves; there was scant movement going in the upwards direction.
Leading the charge this week were several regional banks including Bendigo, Suncorp, and BOQ, among others.
Rather than these rates implying any sort of view or position, the banks are taking advantage of the dive in wholesale funding rates to offer more competitive home loan rates; naturally, term deposits are sliding to compensate, as funding is now cheaper elsewhere.
Macquarie Bank, another week, another cut
Macquarie shed some basis points from longer terms this week.
| Term | New Rate % p.a. (Change) |
|---|---|
| 1 Year | 4.70 (-0.15) |
| 2 Years | 3.90 (-0.20) |
| 3 Years | 3.80 (-0.20) |
| 4 Years | 3.80 (-0.20) |
| 5 Years | 3.80 (-0.20) |
Interest is payable annually and the minimum deposit is $5,000 while the maximum is $1 million.
Bendigo Bank jumps into the cutting action
| Term | New Rate % p.a. (Change) |
|---|---|
| 1 Year | 4.65 (-0.10) |
| 2 Years | 3.30 (-0.70) |
| 3 Years | 3.30 (-0.70) |
| 4 Years | 3.30 (-0.70) |
| 5 Years | 3.30 (-0.70) |
The minimum deposit on these is $5,000 while the maximum is $5 million.
Interest is payable at maturity for the two shortest, while the three longest have interest paid annually.
Suncorp bets on shorter terms
| Term | New Rate % p.a. (Change) |
|---|---|
| 3 Months | 4.55 (+0.15) |
| 6 Months | 4.90 (+0.15) |
| 9 Months | 4.50 (-0.55) |
| 1 Year | 4.40 (-0.45) |
Suncorp has taken the blowtorch to terms nine months and longer, while seeing value in boosting shorter term rates.
The minimum deposit on these is $5,000; higher rates are available if you deposit $100,000 or more.
Interest on these is payable at maturity, or on other frequencies if you accept a lower rate.
Bank of Queensland premieres cuts on its 'Premier' products
| Term | New % Rate p.a. (Change) |
|---|---|
| 6 Months | 4.90 (-0.10) |
| 9 Months | 4.70 (-0.10) |
| 1 Year | 4.70 (-0.10) |
| 2 Years | 3.30 (-0.70) |
The wider banking strategy behind lower swap rates leading to lower TD rates is evident in BOQ's big cut made to its 2-year rate, with a maximum tenure of 3-years.
The biggest dive in swap rates has been seen on 3-year swaps.
For BOQ the minimum deposit here is $5,000 while the maximum is $250,000 - a lot lower than most.
Interest is payable at maturity on the former three, while the 24-month rate has interest paid annually; lower rates apply for more frequent interest payments.
Other moves
- Bank of Sydney cuts 6-month rate by 5bps
- Beyond Bank cuts 1- and 3-year rates by up to 20bps
- Credit Union SA cuts 3 to 11-month rates by up to 50bps
- Horizon Bank cuts 9-month and 1-year rates by up to 80bps
- ME Bank cuts short-term rates by up to 10bps
- Great Southern Bank cuts rates by up to 20bps
Photo by Wyron A on Unsplash
